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EP226: Debunking Ecommerce Platform Cost Model Myths: The Devil In The Detail
Manage episode 409049778 series 2581854
Hot on the heels of Shopify’s smart PR on their platform TCO cost model and value proposition ‘research’, we’re pulling apart why vendor-led cost model analysis needs to be taken with a generous pinch of salt.
The issue: no two TCO models ever show exactly the same cost model structure or calculations, so you’re not getting a true like-for-like comparison and evaluation. This can distort perceptions of value and create false flags, either under or overstating real costs.
There are lots of “research shows platform X has the lowest TCO / fastest ROI” studies, and from our experience this is smoke & mirrors. Which platform ecosystem delivers the most affordable cost model and highest value is dependent upon the size of business, complexity of build, operational setup and a brand’s red lines. It also depends upon how value is defined, and whether or not attempts are made to put a monetary value to things like opportunity cost and operational efficiency.
When a cost model assessment is based on the business type that is best suited to a particular platforms, inevitably the research will demonstrate it hits the value goal.
In this podcast, we break down why you need to be sceptical when vendors publish cost models showing they deliver the most value / quickest ROI. It’s great marketing but we explain why no platform can ever state it consistently delivers the lowest cost for any business. Let’s pick apart cost models!
279 Episoden
EP226: Debunking Ecommerce Platform Cost Model Myths: The Devil In The Detail
Inside Commerce: Ecommerce Strategy, CX and Technology Podcast
Manage episode 409049778 series 2581854
Hot on the heels of Shopify’s smart PR on their platform TCO cost model and value proposition ‘research’, we’re pulling apart why vendor-led cost model analysis needs to be taken with a generous pinch of salt.
The issue: no two TCO models ever show exactly the same cost model structure or calculations, so you’re not getting a true like-for-like comparison and evaluation. This can distort perceptions of value and create false flags, either under or overstating real costs.
There are lots of “research shows platform X has the lowest TCO / fastest ROI” studies, and from our experience this is smoke & mirrors. Which platform ecosystem delivers the most affordable cost model and highest value is dependent upon the size of business, complexity of build, operational setup and a brand’s red lines. It also depends upon how value is defined, and whether or not attempts are made to put a monetary value to things like opportunity cost and operational efficiency.
When a cost model assessment is based on the business type that is best suited to a particular platforms, inevitably the research will demonstrate it hits the value goal.
In this podcast, we break down why you need to be sceptical when vendors publish cost models showing they deliver the most value / quickest ROI. It’s great marketing but we explain why no platform can ever state it consistently delivers the lowest cost for any business. Let’s pick apart cost models!
279 Episoden
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1 EP278: Optimising Ecommerce Returns & Exchanges, with Oh Polly Customer Journey Manager Emily Mcmorran & Loop's Senior Product Manager Samir Kamnani 45:44
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1 EP277: Founder Interview > How Order Editing Is Transforming Post Purchase CX, Improving Returns & Reducing Customer Support Tickets 53:28
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1 EP276: From Monolith To Composable: SportsShoes CTO On Delivering Digital Transformation & Managing Operational Change At Scale 52:21
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1 EP275: The Current State of AI in Ecommerce And Where We’re Headed With Visual Content Generation for Brands 42:02
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1 EP274: Ecommerce Vendor Strategy Update: Leadership Interviews With BigCommerce, Shopify, Centra, Commerce Layer, Scayle, Remarkable & Shopline 1:54:39
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1 EP273: Look Fabulous Forever MD On Building True Customer Loyalty Through Brand, Product Expertise & Excellent Customer Service 52:31
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1 EP272: The Evolution of Ecommerce Replatforming - Insights & Advice Based On Project Experience 38:40
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1 EP271: Economic Factors Impacting Ecommerce in 2025 + 6 Key Trends Ecommerce Teams Should Be Thinking About 45:14
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1 EP269: Delivering One Of The Industry's Biggest SaaS Migrations With More Than 1 Million Products, with World Books Product Director 50:33
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1 EP268: Unified Commerce: What Does It Really Mean? Unpicking The Latest Ecommerce Buzzword To Focus On What Matters To Ecommerce Businesses 37:01
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1 EP267: Re-engineering Pangaia’s Shopify Storefront to Increase Operational Efficiency, with Commerce UI CTO Michal Klim 44:33
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1 EP265: Delivering A Smarter CX: Integrating AI Chatbots Into Onsite User Journeys To Improve Product Discovery, with Asklo 41:53
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1 EP264: What Should Ecommerce Brands Be Reporting On, And Why, With OmniCommerce's Consulting Director Joe Fletcher 41:18
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